An advertising agency is an independent business composed of creative and business professionals who develop, prepare, and place advertising campaigns in media for clients seeking customers. The agency is a team of experts appointed by a client to plan, produce, and place advertising in media. Key positions in an agency include account executives, copywriters, creative directors, and media planners. Agencies can be organized centrally, decentrally, or as in-house agencies, each with their own advantages and disadvantages. Agencies earn compensation through commissions, negotiated fees, or percentage charges.

1. Advertising Agency
(Ad agency)

2. Important players in advertising
1. Advertiser ( Client Organisation)
2. Advertising Agency
3. Media organisations
4. Marketing Communication specialist
organisations
5. Providers of collateral services

3. Ad agency
• According to AAAA “ Advertising agency
is an independent business, composed of
creative and business people who develop,
prepare and place advertising in advertising
media for sellers seeking to find customers
for their goods or services
• It is a team of experts appointed by a client
to plan, produce and place advertising
campaigns in the media.

4. Positions in Ad agencies
1. Accounts Executive
2. Copywriters
3. Visualisers
4. Creative Director
5. Production Department
6. Media planner
7. Marketing Research Executive

5. Some more….
8. Media Executives
9. Ancillary Service Providers
10. Freelancers

6. Advertising Organisation
Systems
1. Centralised
2. Decentralised
3. In house ad agencies

7. Centralised
Advantages
1. More Efficient Communications
2. Requires fewer personnel
3. Continuity of staff
4. More involvement of top management
possible

8. Centralised
Disadvantages
1. Less understanding of overall marketing
goals
2. Longer response time
3. Limited ability to handle many product
lines

9. Decentralised
Advantages
• Concentrated managerial attention
• Rapid response to problems & emerging
opportunities
• Increased flexibility

10. Decentralised
Disadvantages
1.Less effective decision making
2.Unhealthy internal conflicts
3. Misallocation of funds
4. Managers lack sufficient authority

11. In-house ad agencies
Advantages
1. Cost savings
2. More control on activities & costs
3. Increased coordination

12. In-house ad agencies
Disadvantages
1. Less experience
2. Less objectivity
3. Less flexibility

13. Functions of Ad agency
• Account Services
• Marketing Services
(a) Research Department
(b) Media Department
(c) Sales Promotion/ Direct Marketing
• Creative Services
(a) Art Department
(b) Production Department
(c) Traffic Departments
• Management and Finance

14. Type of ad agency
1. Full Service Agencies
2. High Quality Service Agencies
(a) Media buying Services
(b) Creative Boutiques

15. Agency Structure
• Departmental system
• Group System

16. Agency Compensation
• Commission
• Negotiated fee
• Percentage Charges

17. Agency Evaluation
• Performance Area • Assessment Methods
1. Financial 1. Formal
2. Qualitative 2. Informal

18. Acquiring new clients
1. Referrals
2. Solicitations
3. Presentations

19. Client Agency relationship
• Spirit of partnership
• Not to imitate other advertisers
• Encourage risk taking & experimentation
• Make it profitable for agency
• Knowledge of clients’ culture & philosophy
• Delegation of authority
• Honest in praise, polite in disapproval
• Trust

20. Top Ad agencies (India)
1. HTA ( Hindustan Thompson associates)
2. Ogilvy & Mather Ltd
3. McCann Erickson India Ltd.
4. Lowe Lintas
5. Mudra Communications Ltd.
6. Rediffusion – DY & R
7. Da Cunha Associates & Draft FCB Ulka
8. Trikaya Grey Advertising India Ltd.
9. RK Swamy /BBDO advertising Ltd.

21. Thank you !
Muchas Gracias !